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When a commissioned salesperson leaves employment, the most common dispute we encounter involves that employee’s entitlement to payment of commissions after their departure date. ...more
In a decision with significant implications for employers and employees alike, the New Jersey Supreme Court on March 17, 2025, clarified that commissions constitute wages under the New Jersey Wage Payment Law (“NJWPL”)....more
On March 17, 2025, the New Jersey Supreme Court ruled that commissions are considered “wages” under the New Jersey Wage Payment Law (“NJWPL”). This critical decision clarifies that commissions are direct monetary compensation...more
On March 17, 2025, the Supreme Court of New Jersey held that “commissions” must be considered “wages” under the New Jersey Wage Payment Law (WPL) and cannot be excluded as “supplementary incentives” because they are tied to...more
What should employers do when there is a dispute about the amount of commissions owed to an employee? Should the employer pay the undisputed amount, withhold the disputed amount, and then wait for a determination from the...more
On March 17, 2025, the New Jersey Supreme Court unanimously held in Musker v. Suuchi that commissions are included in the definition of “wages” under New Jersey’s Wage Payment Law (“WPL”). Wages under the WPL are defined as...more
California wage and hour law is never so confusing as during the holiday season. Beyond making sure that employees receive their paychecks on time, employers must correctly determine the “regular rate of pay" so that they can...more
In this brief update, we detail several changes impacting employers in jurisdictions across the nation. California- •California’s Department of Industrial Relations issued updated FAQs for the State’s Private Attorney...more
In June 2024 I wrote this article discussing in-depth the case of Musker v. Succhi, et al., and the implications the Appellate Division’s ruling had for wage disputes regarding sales commissions. As a reminder, the plaintiff...more
When litigating claims under the federal Fair Labor Standards Act (FLSA), litigants are aware of long-standing case law that essentially awards a prevailing plaintiff with their attorneys’ fees absent extraordinary...more
On March 28, 2024, in Sutton v. Jordan’s Furniture, Inc., the Massachusetts Supreme Judicial Court (SJC) upheld a Massachusetts Superior Court decision finding the furniture retailer’s commission-based compensation scheme...more
In Klauber v. VMWare, the First Circuit upheld an employer’s use of a provision in its compensation plan that allowed it to modify commissions on certain large or atypical sales. These “windfall” clauses are common in sales...more
Psychologist Abraham Maslow once observed, “If the only tool you have is a hammer, it is tempting to treat everything as if it were a nail.” That sums up the state of commission litigation under the Massachusetts Wage Act:...more
The Colorado Department of Labor and Employment (CDLE) has been busy this summer with the release of several Interpretive Notice & Formal Opinions (INFOs), providing guidance on the evolving landscape of Colorado...more
The Texas Supreme Court recently established a “default rule” which, as the dissent puts it, may “threaten the expectations of Texas at-will employers and employees who have agreed to a commission structure but, for whatever...more
Although it involves Texas law, a recent case illustrates the pitfalls that an employer can face when a former employee makes a claim for commissions or compensation after their employment has ended. It also offers...more
Under California law, an employee is exempt from California’s overtime requirements and other wage and hour laws if the person is employed in an administrative capacity. To meet this exemption, California’s wage orders and...more
Two of the more complicated areas of California wage-and-hour law involve commission plans and overtime exemptions. Commission plans are complex animals – long gone are the days where Joey gets 5 cents for each widget he...more
Arizona law with respect to payment of bonuses and/or commissions is not always clear. There are many issues for both the employer and employee to consider. Below is a summary of some of things both parties should consider in...more
On September 5, 2019, the Washington Supreme Court issued a huge win for all non-agricultural employers who pay commission or piece-rate pay to their employees in Washington state. In a 6-3 decision, the Washington Supreme...more
Starting today, Minnesota has one of the toughest wage theft laws in the country. The civil portions of Minnesota’s new Wage Theft Law, effective July 1, 2019, require employees to take the following additional actions...more
On May 8, 2019, the Massachusetts Supreme Judicial Court (SJC) issued a unanimous opinion holding that salespeople who are paid solely on draws and commissions are entitled to separate and additional overtime and Sunday pay...more
On May 8, 2019, Massachusetts’ highest court held that retail salespersons who are paid entirely on a commission or draw basis, may nevertheless be entitled to additional overtime or pay for work on Sundays. The Supreme...more
Adhering to the “plain and ordinary” language of the state’s overtime statute and related regulations, the Massachusetts Supreme Judicial Court has held that inside sales employees paid on a 100% commission basis are...more
In Lukas v. Unidine Corp., et al., Judge Davis held that, under the Massachusetts Wage Act, GL c. 149, § 148, employee commissions can be conditioned on receipt of customer payments on which the commissions are based. Judge...more